Status
Mandatory for All Employers
Effective Period
Latest CPI / DA revision · April 2026
Notification
Base award 2016 + monthly CPI-linked DA
Issued by the Labour Commissionerate, Government of Kerala. Applies to every employer registered under Shops & Commercial Establishments in Kerala. Non-compliance attracts penalty under the Code on Wages, 2019.
Minimum Wages in Kerala
2026 — Grade-Wise Rates
Kerala structures minimum wages differently - a uniform Basic wage per grade plus a district-specific DA linked to the Consumer Price Index (no zone system). The figures below are for Ernakulam (Kochi), General track; other districts differ only in the DA component.
Quick Answer
For Shops & Commercial Establishments in Ernakulam (Kochi), monthly minimum wages run from ₹13,316 (Grade E, entry) to ₹14,366 (Special grade) on the General track, with a separate IT / software track up to ₹18,846. Latest DA revision effective April 2026.
₹13,316 - ₹14,366
per month · Shops & Commercial Establishments
Incl. district DA
ErnakulamNext revision
Monthly (CPI-linked)Last updated: June 2026. Figures are compiled from the latest available notifications and reputable compliance sources and are provided for guidance only. Minimum wages and VDA change frequently - verify against the official notification (Kerala Labour Commissionerate) before using for payroll.
Rate Card - Shops & Commercial Establishments (Ernakulam)
Kerala grade-wise monthly minimum wage for Shops & Commercial Establishments, General track, Ernakulam (Kochi). Basic is uniform statewide; DA varies by district.
| Grade (Ernakulam, General track) | Total / month |
|---|---|
| Special - Senior / Supervisory | ₹14,366 |
| Grade A - Experienced skilled | ₹14,156 |
| Grade B - Skilled | ₹13,946 |
| Grade C - Semi-skilled | ₹13,736 |
| Grade D - Unskilled | ₹13,526 |
| Grade E - Entry-level | ₹13,316 |
Figures are for Ernakulam (Kochi), General track, latest CPI-linked DA revision. Basic is uniform statewide; the DA component varies by district, so totals differ slightly elsewhere. A separate IT / Computer Software track applies (Grades F-I, approximately ₹16,386-₹18,846/month in Ernakulam). The base award is the 2016 notification with monthly CPI-linked DA revisions - verify the current DA for your district before payroll use.
How Kerala Structures Minimum Wages (No Zones)
Kerala does not use the zone system most states use. Instead, the total wage is built from three parts:
Uniform Basic by grade
Unlike most states, Kerala does not use zones. The Basic wage for a given grade is the same across the whole state.
District-specific DA (VDA)
A Dearness Allowance linked to each district’s CPI is added on top of Basic and revised monthly - so two workers in the same grade earn slightly different totals in, say, Ernakulam vs Thiruvananthapuram.
Special allowance
A flat ₹200/month Special Allowance applies on the General track. A separate IT / Computer Software scale (Grades F-I) applies to software-sector staff.
What Every Kerala Employer Must Do
Pay at least the notified zone-wise rate
Use the rate matching each branch’s location - not the head-office zone. Paying below the notified minimum is illegal even if the employee agrees.
Apply the latest VDA / revised rate
Update payroll the moment a new notification or VDA revision is published. Arrears apply from the effective date, not the date you noticed.
Maintain wage & attendance registers
Keep statutory registers, wage slips and muster rolls. Inspectors can demand records for the past several years.
Layer statutory costs correctly
On top of minimum wage, account for PF (12% of basic), ESI (3.25% if wage ≤ ₹21,000), bonus and gratuity provision.
Penalty for Non-Compliance
Under the Code on Wages, 2019 (in force across India from 21 November 2025), paying any worker below the notified minimum wage attracts a fine up to ₹50,000 for a first offence, and imprisonment up to 3 months or a fine up to ₹1,00,000 (or both) for a repeat offence within five years. The employer must also pay the full wage arrears due. Failing to maintain the prescribed wage and attendance registers carries a further fine up to ₹10,000. The Kerala Labour Department enforces this through Inspector-cum-Facilitator inspections across Kochi and Thiruvananthapuram's retail, hospitality, IT and plantation establishments, so Kerala employers should keep payroll and statutory registers audit-ready year-round.
Source: Code on Wages, 2019 (Act 29 of 2019), Sec. 54 · Kerala Labour Commissionerate
Download the Kerala Minimum Wages 2026 Rate Card
Get the full PDF - all zones, every role band, VDA breakdown and an employer compliance checklist. Free, ready for your HR & payroll records.
Frequently Asked Questions
What is the minimum wage in Kerala in 2026?
For Shops & Commercial Establishments in Ernakulam (Kochi), the General track runs from about Rs.13,316/month (Grade E) to Rs.14,366/month (Special grade), with a separate IT/software track up to about Rs.18,846/month. Totals vary slightly by district through the DA component.
Does Kerala use zones for minimum wages?
No. Kerala uses a uniform Basic wage per grade plus a district-specific Dearness Allowance (DA) linked to each district's Consumer Price Index - not the zone system most states use.
Why do Kerala wages differ between districts?
The Basic wage is identical statewide for a given grade, but the DA is tied to each district's CPI. So the same grade earns a slightly different total in Ernakulam versus Thiruvananthapuram, purely because of DA.
How often is the Kerala DA revised?
The DA is recalculated frequently (monthly) against district CPI data, so the total minimum wage can change within weeks. Always restate the as-of date and check the live notification.
Is there a separate IT-sector minimum wage in Kerala?
Yes. The Shops & Commercial Establishments notification has a separate IT / Computer Software track (Grades F to I), with higher rates - roughly Rs.16,386 to Rs.18,846/month in Ernakulam.
What is the latest Kerala minimum wage notification?
The base Shops & Commercial Establishments award is the 2016 notification; the 2025-26 changes are CPI-linked DA revisions layered on top, with the latest revision effective around April 2026. Confirm the current DA on the Kerala Labour Commissionerate site.
What is the penalty for paying below minimum wage in Kerala?
Paying below the notified minimum is illegal even with consent. Employers owe full arrears and face fines and possible prosecution under the applicable wage law.
Does minimum wage include PF and ESI?
No. Minimum wage is the gross paid to the worker. PF (12% of basic), ESI (3.25% of gross if wage is up to Rs.21,000), bonus and gratuity are additional employer costs.
Explore Minimum Wages Across India
Minimum wages differ by state, zone, skill and industry. Compare Kerala with other states, or see the full national overview.
Stop tracking minimum wage changes in spreadsheets
factoHR Chennai auto-applies zone-wise minimum wages, VDA, PF, ESI and PT, and generates statutory-compliant payslips and registers - so Kerala businesses stay compliant without the manual work.
